Buy or Lease a car? Which is the way to go?

[genius]

With respect to owning vs. leasing-

Assuming the leasee is the registrant of the vehicle and is deemed a scofflaw, DMV will not allow him/her transfer plates to a new car-They will not issue new plates either. I’ve seen it happen

Not sure if we are comparing apples to oranges here.

I'm not talking about transferring plates. I'm talking about transferring the car to a new owner and the new owner getting new plates.

I know nothing about leasing problems as when I looked into it years ago it didn't make sense to me to be done for non-business purposes i.e., where the lease payments could be expensed, so since I didn't see any advantages to me I didn't spend any time researching the disadvantages.

As far as I can tell the leasee's who make out are those who leased just before the COVID hit (and the the purchase price at the end of the lease was way below the current market value of the car).

 

[MassyMan]

As far as I can tell the leasee's who make out are those who leased just before the COVID hit (and the the purchase price at the end of the lease was way below the current market value of the car).

Im with you on leasing - I always found it a good option for women, people with businesses to use it as an expense & people who need to live a fake status illusion of having things they can’t really afford but can well temporarily call theirs.

one of my family members did exactly what you said during COVID when their lease was up and got a car that was valued at $30k for $18k market wise. Good investment.

 

[billyS]

Im with you on leasing - I always found it a good option for women, people with businesses to use it as an expense & people who need to live a fake status illusion of having things they can’t really afford but can well temporarily call theirs.

one of my family members did exactly what you said during COVID when their lease was up and got a car that was valued at $30k for $18k market wise. Good investment.

Hit the nail on the head with "people who need to live a fake status illusion of having things they can’t really afford "

 

[Rider]

Hit the nail on the head with "people who need to live a fake status illusion of having things they can’t really afford "

True, for a portion of those who lease.

However, there are others who simply always want a new car that’s covered by a warranty. They have money and can afford to always lease as you’re actually paying for depreciation which is always greatest in the first 3 years of ownership.

 

[trader1]

Hit the nail on the head with "people who need to live a fake status illusion of having things they can’t really afford "

Perhaps a separate thread for this?

With the exception of the Tri State area, most vehicles that are delivered in North America are purchased, not leased.

Prior to the significant market adjustments ( pre supply chain issues, inflation, interest rate hikes etc), leasing was the most cost effective way to drive a new vehicle ( with the latest safety features, technology etc) that our demographic area wanted—

Taking into account the true cost of transportation ( monthly payment, maintenance, potential warranty issues on ownership), leasing WAS the way to go…

Markets changed and the manufacturers stopped supporting leases like they did years ago…

I’ve been leasing for 20-25 years - My current leased just expired and just purchased

 

[picklehead]

Leasing is more expensive if you run the numbers. But obviously if you like changing cars, lease.

 

[Satisfied customer]

You really have to consider the vehicle itself too. Some leases are better than others.

As a car guy I tend to take great care of my cars after by year 5 you are getting ahead of depreciation.

I own a classic and a sedan. I lease an SUV that I write off through the business. The one nice thing with leasing is with the manufacturer I deal with, any damage that can be covered with a credit card is forgiven. It helps me NOT care about dings and chips and looking forward to a hassle free upgrade later.

 

[Bricktop]

Leasing is more expensive if you run the numbers. But obviously if you like changing cars, lease.

Leasing is like mongering and purchasing is like wedlock

 

[Bricktop]

Perhaps a separate thread for this?

With the exception of the Tri State area, most vehicles that are delivered in North America are purchased, not leased.

Prior to the significant market adjustments ( pre supply chain issues, inflation, interest rate hikes etc), leasing was the most cost effective way to drive a new vehicle ( with the latest safety features, technology etc) that our demographic area wanted—

Taking into account the true cost of transportation ( monthly payment, maintenance, potential warranty issues on ownership), leasing WAS the way to go…

Markets changed and the manufacturers stopped supporting leases like they did years ago…

I’ve been leasing for 20-25 years - My current leased just expired and just purchased

Some manufacturers garner the majority of their business from leasing Jaguar and Range Rover.

 

[AlwaysHavingFun]

Im with you on leasing - I always found it a good option for women, people with businesses to use it as an expense & people who need to live a fake status illusion of having things they can’t really afford but can well temporarily call theirs.

one of my family members did exactly what you said during COVID when their lease was up and got a car that was valued at $30k for $18k market wise. Good investment.

Depends if it is for business or personal. Most businesses will write off the entire cost of a lease. If you purchase a car through the business, you can depreciate it but then need to pay back profits on the sale later on.

 

[Mongercode]

I leased my fist car ever 8 years ago because it was a luxury car and I wasn’t sure if I would like or even want it after 3 years of driving it around town. Boy was I wrong after a few days of driving it I knew it be mine forever lol. I decided to purchase it out right after the else was up and hits finished paying it off earlier this year. Oh what a feeling I say leave of you’re not sure you will keep it longer than the length of the lease and hey you never know something else may come out Thant you even like more than your current car or truck. I was thinking today while driving this is still the best choice I’ve made car wise in my life I love how it drives to this day no regrets hope this helps. Good luck with whatever you get and choose to drive the choice is yours! To lease or to own that is the question. Decisions, decisions, decisions. 1st world problems.

 

[Bricktop]

If the vehicle is over 6000 gvw you can use monthly payments as depreciation write off. Notice the number of Asians and Rabbi with big SUV tooling around.

 

[billyS]

If the vehicle is over 6000 gvw you can use monthly payments as depreciation write off. Notice the number of Asians and Rabbi with big SUV tooling around.

How can you tell a person is a Rabbi? I didn't think they wore distinct clothing like a preist.

I see many types of people 'tooling' around in SUV's in Nassau, mostly white, upper middle class Karen type soccer moms with right wing slogans on bumper stickers so what's your point?

Which reminds me of the time I was parked on Oceanside Road in RVC across from the Rec center. A kids program must have just ended because a parade of no less than 15 SUV's then started existing the parking lot.
It caught my attention because every single one of them was a late model, oversized (Navigator, Escalade etc) SUV driven by a middle aged white woman. Not one Corrolla in the pack, or any sedan for that matter.

 

[antwerp1701]

How can you tell a person is a Rabbi? I didn't think they wore distinct clothing like a preist.

I see many types of people 'tooling' around in SUV's in Nassau, mostly white, upper middle class Karen type soccer moms with right wing slogans on bumper stickers so what's your point?

Which reminds me of the time I was parked on Oceanside Road in RVC across from the Rec center. A kids program must have just ended because a parade of no less than 15 SUV's then started existing the parking lot.
It caught my attention because every single one of them was a late model, oversized (Navigator, Escalade etc) SUV driven by a middle aged white woman. Not one Corrolla in the pack, or any sedan for that matter.

You see the same thing when school lets out in Westchester county. It's the equivalent of using an aircraft carrier for a biplane.

 

[trader1]

- I don’t think we should stereotype white middle aged soccer moms as the only drivers of the gas guzzling 6-8 seater SUV’s- Sure, they love their carpooling, but there are plenty of other groups driving these trucks

With the exception of some of the Japanese and Korean manufacturers, Ford, GM and others have discontinued the traditional sedans.. ( imo, very shortsighted) for electric and other plug in SUV.

In the years to come I do think we will see a lot of older vehicles on the road as the SUV have become prohibitively expensive- ( lease prices are up 30-40 % from 3 years ago and the once 40k suv is now closer to 50k)

 

[Monty_monty]

True, for a portion of those who lease.

However, there are others who simply always want a new car that’s covered by a warranty. They have money and can afford to always lease as you’re actually paying for depreciation which is always greatest in the first 3 years of ownership.

I ran a fleet of 70 vans, 4 box trucks and 2 18 wheelers - ran an independent supermarket distribution company back in the 1990's, until cross-docking became more price advantageous for the supermarkets and independent grocers..... leasing definitely saved the company lots of money, but no one wanted these vehicles as a dual-use (personal drive around vehicle) - other then when the sales-route delivery guys needed to also do house/apartment moving.

 

[Zak]

When I was a working man I leased all my vehicles usually mercury mountainers, Lincoln Navigator, MKX’s held them for three years then got new ones. It was great because I was use to the payments and always drove new cars.

Now as a retiree I only purchase Toyota and Lexus I have never been happier.

My vehicles are meticulously maintained and never break down. They hold their value and I almost get all my money back when I’m ready for an upgrade.

 

[NINE-LIVES]

I have always leased my vehicles, I love getting a new whip every 3 years.
I just leased a new ride 3 weeks ago, the prices are out of control!
Inventories very low, I even pre ordered the one I wanted and I couldn't get it. I ordered 6 months ago, salesman told me add at least another 4-5 months before you get it.

Anyone with 8-10 months left on a current lease, and you want something specific, I would recommend getting out there and pre ordering.

 

[trader1]

I have always leased my vehicles, I love getting a new whip every 3 years.
I just leased a new ride 3 weeks ago, the prices are out of control!
Inventories very low, I even pre ordered the one I wanted and I couldn't get it. I ordered 6 months ago, salesman told me add at least another 4-5 months before you get it.

Anyone with 8-10 months left on a current lease, and you want something specific, I would recommend getting out there and pre ordering.

Very, very true..
Depending on the manufacturer, one may be able to get out of their lease early ( using the equity, if any, in the vehicle) towards the purchase or lease of another- In certain cases, theirs will offset the sticker shock of a 2022 or 2023..

Prices on preowned models have peaked ( for now) at the auctions, which should result in slightly lower prices going forward

 

[Satisfied customer]

How can you tell a person is a Rabbi? I didn't think they wore distinct clothing like a preist.

I see many types of people 'tooling' around in SUV's in Nassau, mostly white, upper middle class Karen type soccer moms with right wing slogans on bumper stickers so what's your point?

Which reminds me of the time I was parked on Oceanside Road in RVC across from the Rec center. A kids program must have just ended because a parade of no less than 15 SUV's then started existing the parking lot.
It caught my attention because every single one of them was a late model, oversized (Navigator, Escalade etc) SUV driven by a middle aged white woman. Not one Corrolla in the pack, or any sedan for that matter.

I have one of those oversized 6 figure SUVs but in many ways it can be economical and provides real utility.

It seats 7 adults which is a boon when traveling with my family + in laws because getting 22 MPG in one vehicle is better than my in laws following in their accord and getting 38 MPG + tolls.

With the 3rd row down I use it to transport appliances, tools, and or furniture for my rental properties. Also handles those demands in any weather conditions.

I’ll use it for some beach fishing now and then too. At the end of the day a 40 minute wash has it all ready for a night on the town with all its luxury features and sometimes special attention from the valet service.